The FCC directed Universal Service Administrative Co. to carry forward the $83.22 million in unused funds from its 2018 USF Rural Health Care program funding year and redirect it for use in 2019, said a Wireline Bureau public notice on docket 02-60 Monday. Last summer, FCC Chairman Ajit Pai asked for a 43 percent increase in the RHC program to account for inflation since its inception (see 1806060057). The 2019 funding cap for funding year 2019 is $594 million. The FCC released an NPRM last month on whether to set an overall budget cap for all USF programs, and to impose a joint cap for E-rate and RHC (see 1905310069).
The FCC authorized $166.8 million in rural broadband funding to support expansion to more than 60,000 unserved homes and businesses in 22 states starting this month, it said Monday. The funds are part of a Connect America Fund Phase II auction to allocate nearly $1.5 billion over the next decade. Winning bidders must meet CAF service and deployment milestones. Payments will be made monthly over 10 years. Earlier this year, Chairman Ajit Pai expressed interest in a new $20 billion rural digital opportunity fund, which raised questions about what would happen to USF rural broadband programs (see 1904160057).
Despite recent pushback from advocacy groups against Friday's FCC NPRM to place an overall budget cap on USF programs (see 1906030059), arguments can be made in its defense, blogged American Enterprise Institute visiting scholar Mark Jamison Wednesday. Though caps exist on individual USF programs, "having an overall cap would force the agency to explicitly examine the tradeoffs." For example, if benefits to low-income students from having broadband access at school are unequal to those of having broadband at home, he suggested "there are good arguments for reallocating monies towards programs that give more bang for the buck."
Missouri should extend Lifeline to wireless service in response to a surging USF surplus, Assist Wireless commented Tuesday in Public Service Commission docket TO-2019-0346. The PSC is weighing a plan to address the surplus by suspending USF assessment and increasing the discount to $24 monthly for subscribers to the disabled program and $14.75 for Lifeline subscribers from $15.75 and $6.50, respectively (see 1905310046). Assist, AT&T, Verizon and cable balked at proposed increases and pitched other options. “Rather than increase Lifeline support for wireline services that consumers do not want, the Commission should provide Missouri USF support for the wireless Lifeline services that have become truly essential communications services for low-income Missourians,” Assist said. Missouri law “clearly permits, and may require” state Lifeline support for wireless, the wireless company said. The Missouri Cable Telecommunications Association said “increases this large are not warranted and could potentially generate improper incentives for the program, ultimately making it more difficult to curtail or suspend that support if necessary.” As alternatives, cable proposed leaving support at or near current levels, or giving refunds to state USF contributors. The regulator should start by suspending USF assessment, then -- if that's not enough -- gradually increase Lifeline and Disabled program support, AT&T said. The proposed increases could result in free service, with possible unintended consequences including more fraud and abuse, the carrier said. “Removing even minimal price constraints in this manner could cause demand to expand beyond Staff’s projections. If that occurs, financial pressure on the fund could force cutbacks in support levels; and resumed and potentially increased Missouri USF assessments.” Thirty small and independent ILECs asked the agency to reduce but not end state USF surcharges: “While the MoUSF balance may currently be too high and a reduction at this time may be appropriate, there will always be a need for this fund if the Commission is to fulfill its statutory mandate to assist Low-income and Disabled customers in obtaining affordable telecommunications services.” Customers can get confused when a surcharge disappears and reappears on their bills, they added.
Some USF program allies raised alarms in interviews and statements about Friday's FCC 3-2 NPRM calling for an overall budget cap for the four programs (see 1905310069). Some plan to spread the word about the rulemaking to the public, hoping for a critical response. Advocates for government fiscal discipline had kinder words about the rulemaking.
Sandwich Isles Communications petitioned for the entire U.S. Court of Appeals for the D.C. Circuit to reconsider the D.C. Circuit's dismissal of SIC's appeal because it had missed an FCC deadline (see 1905170020). The agency alleges improper USF payments to the company. SIC said (in Pacer) Friday that an FCC employee didn't have authority to impose statutory limitations on seeking review of an order during the recent government shutdown. If there's not a full-court rehearing, the telecom company "requests a panel rehearing based on the panel’s misapprehension of the public notices issued by the FCC concerning the timing of the agency’s suspension of operations."
The two FCC members who addressed the start of Consumer Advisory Committee meeting focused on combating illegal robocalls, with commissioners to vote Thursday on explicitly allowing technology to block such calls (see 1905310061) despite stakeholder requests for more time. "There has been some pushback on this, some folks asking the FCC to delay the vote, or asking the FCC to water down the decision," noted Commissioner Brendan Carr. "I’m absolutely opposed to those steps."
The State E-rate Coordinators Alliance urged the FCC to develop plain-language changes to drop-down menu choices on forms 470 and 471 used in a competitive bidding program for USF-supported internet upgrades (see 1809190046). Filing in docket 13-184, posted Friday, SECA said the confusion puts at risk funding to 700 applicants, many from "small schools and libraries that lack the resources to understand all nuances of E-rate compliance." It sought relief to any applicants affected for funding years 2019 and 2020, and to work with stakeholders to implement a solution before bidding opens for funding year 2021.
Verizon supports a Missouri plan to suspend USF assessment, it said in comments Friday at the Public Service Commission in docket TO-2019-0346. State USF surplus is increasing due to steady revenue and declining costs, the carrier said. “Given the ever-dwindling participation in the USF’s subsidy programs, and weighing the benefits of the fund against the financial burden it imposes on the ratepayers who pay for it, it may make sense for the Commission to consider phasing out the USF entirely.” Verizon resisted the PSC’s plan to reduce the fund balance by increasing state USF support for the Lifeline and disability programs (see 1905200061). That “could result in sudden, artificially-generated spikes in participation, or even potential fraud,” it said. “It would also eliminate a control factor needed to assess the trajectory of USF participation over time without introducing new variables. Greatly increased support levels could easily skew the data that Staff wishes to observe in order to evaluate future trends and their implications on the need to maintain a fund of any size.”
By a party-line FCC member vote, the regulator began asking about starting an overall USF budget cap, as expected (see 1905240064). "Mindful of our obligation to safeguard the USF funds ultimately paid by ratepayers," and to ensure the money is "spent prudently" and consistently, the NPRM asks a number of questions.